Complementary Currency

The community/complementary currency sector continues to evolve and provides the most creative and interesting innovative initiatives in the industry. They typically issue a physical “scrip currency” that circulates through the system. Complementary currency organizations also have a clear identifiable social purpose, be it to improve the local economies, poverty alleviation, improve volunteer participation and/or youth and elderly services.

Historically complementary currency organizations have focused on providing alternative marketplaces in local and regional areas. Such operations generally did not have a revenue model and consequently were funded by donations and/or grants. Often times the initiatives would last as long as the funding lasted.

New hybrid-type complementary currency models are being developed and implemented that combine a revenue source via transactions fees with traditional non-profit funding sources. The positive result is a more financially sustainable complementary currency based program.